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Northern Yankee Company has received an 10%, one-year loan from Big Bank. Interest on the loan is paid at maturity. Big Bank has assessed a

Northern Yankee Company has received an 10%, one-year loan from Big Bank. Interest on the loan is paid at maturity. Big Bank has assessed a 1% one-year probability of default, a recovery rate of 40%,  and a corresponding expected credit loss of $79,200. What is the amount borrowed?

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